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RE: What does Support and Resistance really tell you?
Hi Luc . Thanks again. I have a question. How to differentiate if there is a panic or a trend. First I'am using 1H bar chart and 1 month to recognize the Main Bases. One bar is clear, but what about if the price falls at the same level in about 3 bars and there is a little mini support in the first bar. It is a bit complicated cuz sometimes price return to the main level (100%) or a bit lower (80%) and other cases the price can't pass the mini level (into the panic) so I put more money at the bottom to get a lower average price. Thanks for any help and thanks again.
If your working on a one hour bar chart, you have to read the history of the chart.. How far does a panic typically fall? whats the longest panic you can see within 2 months back? is your present dip/panic anywhere near that deep a fall? those type of questions will guide you to get in a the right spot and not too early